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An appraisal may be required under many circumstances such as mortgage lending, tax purposes, probate & estate, divorce, or foreclosure. For mortgage appraisals, the lender is the client. But, the borrower often pays for the appraisal and has a legal right to a copy of the appraisal. Ethical guidelines prohibit the appraiser from discussing the value with anyone, including the borrower, other than the client.

As of April 2022, all appraisers must use the ANSI Z765-2021 (American National Standard Institute) standard for measuring homes. These guidelines state that the Gross Living Area (GLA) must be based upon a calculation of exterior measurements ABOVE Grade. The appraiser is also required to measure the area below grade and provide the area finished. The below grade area is separate but does have value dependent upon finish and utility.

An appraiser must physically measure the home to include above and below areas, porches, decks, patios etc. The GLA includes areas above grade and these must be adequately finished, heated/cooled, and provide sufficient head room. The GLA does not include covered or screened porches or patios. 

FNMA: Fannie Mae or Federal National Mortgage Association

FHLMC: Freddie Mac or Federal Home Loan Mortgage Corporation 

GLA: Gross Living Area

HUD: U.S. Department of Housing and Urban Development

1004 Form: Residential Appraisal or URAR (Uniform Residential Appraisal Report)\

1004C Form: Manufactured Appraisal

1073 Form: Condominium Appraisal 

1025 Form: 2-4 Family Appraisal

2055 Form: Drive-by Appraisal

EFFECTIVE DATE: the date to which an appraiser’s analyses, opinions, and conclusions apply; also referred to as date of value

REAL PROPERTY: the interests, benefits, and rights inherent in the ownership of real estate

USPAP: Uniform Standards of Professional Appraisal Practice